BitMine Raises $365 Million in Stock Sale to Expand Ethereum Holdings

TLDR

• BitMine holds 2.4 million ETH worth $10.9 billion, controlling over 2% of ether’s total supply
• Company raised $365 million by selling 5.2 million shares at $70 each, a 14% premium to market price
• Additional warrants could bring total funding to $1.28 billion if exercised
• Chairman Tom Lee aims to accumulate 5% of total ETH supply through what he calls “alchemy of 5%”
• BitMine claims to be the world’s largest public holder of ether and second-largest crypto treasury overall

BitMine Immersion Technologies announced Monday it raised $365 million through a stock sale priced at a premium to market rates. The company plans to use the funds to expand its already massive ethereum holdings.

The Las Vegas-based firm sold 5.2 million shares at $70 each to an institutional investor. This price represents a 14% premium over the stock’s September 19 closing price of $61.29.

BitMine also issued warrants for up to 10.4 million additional shares at $87.50 per share. If these warrants are exercised, the company could raise another $913 million, bringing total potential proceeds to $1.28 billion.

The company disclosed its treasury holdings as of September 21, valued at $11.4 billion total. The portfolio includes 2.4 million ETH worth $10.9 billion at $4,497 per token.

BitMine also holds 192 bitcoin, $345 million in cash, and a $175 million equity stake in Eightco Holdings. The firm describes itself as the world’s largest public holder of ether.

Pursuing 5% of Ethereum Supply

Lee outlined BitMine’s ambitious goal of controlling 5% of ethereum’s total supply. He calls this strategy the “alchemy of 5%” and believes it positions the company for major blockchain adoption.

“Wall Street and AI moving onto the blockchain should lead to a greater transformation of today’s financial system,” Lee explained. “The majority of this is taking place on Ethereum.”

BitMine currently controls more than 2% of ether’s supply. The company claims to be the second-largest crypto treasury overall, trailing only Michael Saylor’s MicroStrategy.

Premium Reflects Institutional Interest

The 14% premium on the stock sale demonstrates growing institutional appetite for ethereum exposure. BitMine says it remains the only large-cap US stock offering direct ethereum investment access.

Lee, who also serves as head of research at Fundstrat, credited institutional investors for recognizing the company’s execution capabilities. The firm’s investor base includes ARK’s Cathie Wood, Founders Fund, Pantera, and Galaxy Digital.

BitMine expects the offering to close around September 23, subject to standard closing conditions. The warrants will be exercisable immediately upon issuance and expire on March 22, 2027.

Despite the successful fundraising, BitMine shares traded down 9% to $55.79 as of Monday morning. The stock had closed at $61.29 on September 19 before the premium sale announcement.

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